City to mull Fage agreement

December 1, 2012

JOHNSTOWN - The Common Council on Monday will consider another agreement with Fage USA for its planned major expansion.

This time it's a grant agreement on how to handle $750,000 earmarked for the project.

The council in recent weeks has approved sewer allocation and water agreements with the Johnstown Industrial Park yogurt manufacturer.

Topping the council's meeting agenda at 7 p.m. Monday at City Hall is another agreement with Fage.

"This is another round of funding for the next expansion," City Treasurer Michael Gifford said Friday. "It has to be a grant through a municipality."

Gifford noted the city received $750,000 in funding from the state Housing Trust Fund Corp.'s Office of Community Renewal to assist Fage to expand its manufacturing facility at 1 Opportunity Drive. The resolution, if passed by the council Monday, will execute a "grant, regulatory and security agreement" between the city and Fage.

Fage USA officials have said they want to break ground soon for the $120 million expansion. The project involves an addition, new parking lot and whey pretreatment plant.

The company plans to double production with a new building, increasing a 240-person work force by 150 employees.

Agenda items

Other items on the council's agenda include:

Granting a change order for an asbestos removal project at a city-owned property on Hoosac Street.

Employee transfer between the city Water Department and Department of Public Works.

Rejection of property offers for four properties within the city, and acceptance of an offer for a property on Prospect Street.

Possible extention of the city's contract and agreements with the contractor and engineering firm for the North Perry Street Bridge replacement project.